Ecclestone v Khyami [2014] EWHC 29 (QB) (20 January 2014)

Ecclestone v Khyami [2014] EWHC 29 (QB) (20 January 2014)

The Lamborghini Aventador was a gift from Ms Ecclestone to Mr Khyami, who thereby acquired title and could pledge it as security. Mr Khyami validly pledged the car to Elite, who acquired an immediate right to possession upon default. Elite's subsequent possession and sale to Ansol were not defeated by any better title or illegality on Ms Ecclestone's part. Ms Ecclestone's claim for conversion failed, and the injunction was discharged. Elite and Ansol were entitled to inquiry under the cross-undertaking in damages.

Citation
[2014] EWHC 29
Parties
Claimant: Tamara Ecclestone; First Defendant: Omar Khyami; Second Defendant: Elite Performance Cars Limited; Third Defendant: Ansol Trading Limited trading as Four Seasons
Jurisdiction
England and Wales
Judgment Date
20 January 2014
Procedural Posture
Civil Conversion and Injunction / High Court Trial Judgment
Outcome
Claim for conversion and delivery up by Ms Ecclestone dismissed; injunction discharged; inquiry under cross-undertaking in damages ordered.
Legal Topics
Conversion, Injunctions, Illegality, Ownership of Chattels, Security Interests, Damages, Cross Undertaking in Damages

Case Brief

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Parties

Tamara Ecclestone

Claimant

Omar Khyami

First Defendant

Elite Performance Cars Limited

Second Defendant

Ansol Trading Limited trading as Four Seasons

Third Defendant

Procedural Posture

Civil Conversion and Injunction / High Court Trial Judgment

  1. 1 Whether the Lamborghini Aventador was a gift from Ms Ecclestone to Mr Khyami
  2. 2 Whether Mr Khyami transferred title or security interest in the car to Elite
  3. 3 Whether Elite transferred title in the car to Ansol

Ratio Decidendi

The Lamborghini Aventador was a gift from Ms Ecclestone to Mr Khyami, who thereby acquired title and could pledge it as security. Mr Khyami validly pledged the car to Elite, who acquired an immediate right to possession upon default. Elite's subsequent possession and sale to Ansol were not defeated by any better title or illegality on Ms Ecclestone's part. Ms Ecclestone's claim for conversion failed, and the injunction was discharged. Elite and Ansol were entitled to inquiry under the cross-undertaking in damages.

Court Disposition

Claim for conversion and delivery up by Ms Ecclestone dismissed; injunction discharged; inquiry under cross-undertaking in damages ordered.

Orders

  • Ms Ecclestone's claim for conversion and delivery up dismissed
  • Injunction discharged